iOS developer and hacker iH8sn0w and jcf_dev have released PwnageTool bundles to jailbreak iOS 4.3 GM on iPhone, iPad and iPod touch. You can use these bundles with PwnageTool 4.2 to create custom jailbroken 4.3 firmware files.

Unfortunately though, this is a tethered jailbreak, which means you will need to restart your iPod touch in a tethered-jailbroken mode on every reboot using tetheredboot utility.

We have already covered extensive tutorials on how-to jailbreak iPhone and iPad on iOS 4.3. The instructions for both iPod touch 4G and 3G are exactly same as the ones for iPad. You can follow the instructions posted here, with some changes as explained below.

On Step 3, download iPod4,1_4.3_8F190.bundle file and move it to the location as mentioned in the instructions.